Illustrative image (Source: VNA) Hanoi (VNA) – Microfinance, with easy access to capital, is an effective measure tostrengthen the confidence of women and encourage their engagement in productionactivities, thus improving incomes and reducing poverty, stated Deputy Governorof the State Bank of Vietnam Nguyen Kim Anh.
Addressing aconference in Hanoi on September 25, Anh said that microfinance in Vietnam haslong been one of the key components of the financial system and an efficienttool for poverty reduction.
The majority of thepolicy beneficiaries are low-income, disadvantaged, and vulnerable groups insociety, and women in particular, she said.
Statistics have shownthat in recent years, the ratio of poor households based on the new povertystandards has reduced from 9.88 percent in 2015 to 6.7 percent in 2017, alongwith a strong rise in average household incomes.
However, she also pointedto a number of shortcomings in Vietnamese microfinance, such as small-scale andlimited range of products and services, along with an incomplete and incoherentlegal framework.
Moreover, financialmanagement consultation, support, and education activities for customers ofmicrofinance have been inefficient, which will pose negative impacts on the long-termeconomic development of business households, including women, Anh added.
Addressing the event, TranThanh Long, Director of the Phu Yen branch of the Banking Academy, said thatfinancial, social, and human resources are the three major demands of low-incomecustomers. He stressed the need for financial education to promote the qualityof human resources.
Long held that privatefinance education helps enhance the efficiency of capital use, ensuring thesafety of loans and preventing violations from intermediary organisations.
The current financialeducation programmes have yet to meet the demands of customers, he said,stressing that vulnerable groups must be trained in microfinance before receivingloans in order to optimise the use of borrowed capital. At the same time, it isnecessary to train lecturers and build suitable courses on specific subjects forloan borrowers. –VNA
VNA
